Vacation Homes

Thinking about a Vacation Property?Start by weighing the pros and cons.
Choosing to own a vacation property or second property can offer you many exceptional advantages (especially now with today’s remarkably low mortgage rates), as well as potential disadvantages.


  1. Great investment?Real estate has always fluctuated, but historically it has risen in value, especially in popular areas with limited availability.
  2. Rental income ?If you choose to rent, you can benefit from additional income. If you also use the property personally, you may be eligible to deduct operating expenses and potentially benefit from tax deductions.
  3. Retirement test drive?It can also enable you to experience the benefits of retirement ahead of time, to see if the reality lives up to the dream in regards to location, amenities and lifestyle.
  4. Convenience? of being able to have all your ski gear or summer wear already stored in your vacation property allows you to take holidays at the drop of a hat without the hassle of all that extra baggage.



  1. Upfront Fees ?Depending on where you choose to buy, it is likely to cost more than to rent. You will also have the costs of furnishing and decorating to add to your budget.
  2. Mortgage Costs ?You may find that the percentage of down payment on the mortgage will be greater on a vacation home than your first home, often requiring a 20% to 30% down payment. Interest rates may also be higher.
  3. Upkeep Expenses?You’ll also want to consider on-going maintenance costs. Just like your main home, there are always things to fix or update, trades to organize and meet. Holiday time could sometimes be a lot of work.
  4. Justifying your investment?Because you have made the investment, you will likely feel obliged to visit your holiday home as much as possible, rather than explore other places. Be sure you will love it in the future as much as you do now.

As with any major purchase, it’s best to weigh the pros and cons so you can make an informed decision. Why not consider talking with an independent Mortgage Broker with BIG CITY FINANCIAL, someone who can help you look at all sides of owning a vacation property.